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Price Elasticity of Demand
Price elasticity of demand is a metric that quantifies how responsive consumer demand is to price changes. It is specifically defined as the percentage change in quantity demanded that results from a 1% increase in price. This value is conventionally expressed as a positive number. Based on this value, demand is categorized as 'elastic' if the elasticity is greater than 1, and 'inelastic' if it is less than 1.
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